Substack's founder doesn't see it as replacing other social networks but as a distinct "city" with a unique culture—intellectual and cosmopolitan. This framing attracts a specific type of user and creator, differentiating it from "cities" like TikTok or Twitter.
Making user data and audiences portable seems counterintuitive to retention. However, Substack found that by allowing creators to export their email lists, it removed the fear of platform lock-in. This trust makes creators more willing to invest deeply in the platform.
Substack's founder predicts AI will eliminate mediocre content. The winners will be at the extremes: either maximally authentic and human (like live streams) or perfectly polished and AI-generated. Everything in the messy, semi-polished middle will struggle to compete.
Substack's very first customer generated six figures in revenue within hours. This massive, early success provided founder Chris Best with the conviction to persevere when finding the next 20 customers proved much more difficult.
Substack's growth wasn't just a "COVID blip." Its continued success is driven by a fundamental shift in the economy of attention. As attention becomes our scarcest resource, we are more willing to pay to curate it with high-quality, trusted content.
As loneliness increases, media consumption is shifting from passive viewing to active participation. Platforms that best replicate the experience of a real-life conversation, like live streams with interactive comments, are positioned to win because they fulfill a deep-seated human need for connection.
Substack's founder wasn't trying to start a company. He was on sabbatical, writing an essay to articulate his frustrations with the digital media economy. This deep thinking on the core problem became the foundation for the business, prioritizing a strong thesis over a formal plan.
People claimed they would never pay for online content in the abstract. But when founder Chris Best asked if they'd pay for their *single favorite* writer, the answer was yes. This specificity proved the model's viability, showing people pay for trusted relationships, not generic content.
Substack's founder argues that online spaces become "heaven or hell" based on their core business model. Ad-based models optimize for attention (often leading to outrage), while Substack's revenue-share model forces its algorithm to optimize for the value creators provide to their audience.